Key Takeaways
- • StubHub CEO Eric Baker operates a hedge fund that directly funds and profits from ticket scalpers operating on StubHub's own platform, according to a CBC investigation based on SEC IPO filings disclosed in November 2025.
- • Baker's hedge fund, Andro Capital, has poured millions of dollars into bulk ticket-scalping operations that resell tickets through StubHub, creating a structural conflict of interest where the company's leadership benefits from inflated secondary market prices.
- • StubHub maintains its public position as a neutral "technology platform" (comparable to eBay) that does not own or hold tickets, despite the revealed financial interests of its CEO in scalping operations that drive up prices for consumers.
- • The company's incentive structure amplifies scalping activity: StubHub collects percentage-based resale fees that increase when ticket prices rise, and collects fees again if scalped tickets are resold multiple times on the platform.
- • This arrangement directly undermines StubHub's stated mission as a "marketplace for fans" and raises governance and disclosure concerns regarding the alignment of management incentives with consumer interests and platform integrity.
Summary
A CBC investigation has exposed a fundamental conflict of interest at StubHub, revealing that CEO Eric Baker operates a hedge fund actively funding ticket scalpers who conduct business on his own platform. The investigation, based on StubHub's SEC filings from the company's November 2025 IPO, uncovered that Baker runs Andro Capital, which has invested millions of dollars into bulk ticket-scalping operations. These scalpers then resell tickets through StubHub at inflated prices, creating a direct financial incentive for the CEO to promote the very market dynamics that harm ordinary fans.
When confronted with the discovery, StubHub defended its position by restating its standard legal position: "StubHub does not own, possess, or sell tickets. We are a technology platform that connects independent buyers and sellers," drawing a comparison to eBay. However, this response sidesteps the core issue—while StubHub itself may not hold inventory, its leadership is directly profiting from scalpers who do, fundamentally compromising the company's credibility as a consumer-friendly marketplace.
The structural economics of StubHub's business model compound this problem. As a percentage-based resale platform, StubHub's revenue increases when ticket prices rise. Additionally, the platform collects fees each time a ticket is resold—meaning scalped tickets that change hands multiple times generate multiple revenue streams for the company. This creates a perverse incentive where higher prices and greater scalping activity directly benefit StubHub's bottom line, particularly given that Baker's personal hedge fund profits from the same scalping operations.
The investigation highlights a systemic issue that has plagued secondary ticket markets since the expansion of online resale platforms. Scalpers now dominate desirable events, causing tickets to sell out immediately and forcing local fans to choose between paying exorbitant markups or forgoing attendance. While technology was intended to democratize ticket access, the current incentive structures—exemplified by Baker's dual roles—have created what the investigation characterizes as a "hellscape" for consumers, particularly during major sporting events like NBA and NHL playoffs.
When confronted with the discovery, StubHub defended its position by restating its standard legal position: "StubHub does not own, possess, or sell tickets. We are a technology platform that connects independent buyers and sellers," drawing a comparison to eBay. However, this response sidesteps the core issue—while StubHub itself may not hold inventory, its leadership is directly profiting from scalpers who do, fundamentally compromising the company's credibility as a consumer-friendly marketplace.
The structural economics of StubHub's business model compound this problem. As a percentage-based resale platform, StubHub's revenue increases when ticket prices rise. Additionally, the platform collects fees each time a ticket is resold—meaning scalped tickets that change hands multiple times generate multiple revenue streams for the company. This creates a perverse incentive where higher prices and greater scalping activity directly benefit StubHub's bottom line, particularly given that Baker's personal hedge fund profits from the same scalping operations.
The investigation highlights a systemic issue that has plagued secondary ticket markets since the expansion of online resale platforms. Scalpers now dominate desirable events, causing tickets to sell out immediately and forcing local fans to choose between paying exorbitant markups or forgoing attendance. While technology was intended to democratize ticket access, the current incentive structures—exemplified by Baker's dual roles—have created what the investigation characterizes as a "hellscape" for consumers, particularly during major sporting events like NBA and NHL playoffs.
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